The buzz is missing at Asia’s largest chilli yard in Guntur. The enactment of Farmers’ Produce Trade and Commerce Act, which allows farmers to sell agricultural produce outside the Agricultural Market Committee (AMC), has yet to sink in the local farmers, most of who own less than 0.6 hectare, but has caused considerable consternation among farmers’ unions and progressive leaders, who feel that the legislation has removed the safety net for farmers and allowed the corporate giants with deep pockets to control the markets.
"The Act removes the safety net around farmers. In spite of many ills plaguing the AMCs, including the role of commission agents, the mandis offer farmers a protective atmosphere. The governments can effectively intervene whenever the market crashes and support the farmers. AMCs had existed in the pre-independence period and there were then elected bodies. The AMCs or mandis in North India have been effective in controlling the corporates," says Kolla Rajamohan, Nallamada Rythu Sangham president.
Bihar experience
Citing the example of Bihar where AMCs were scrapped 20 years ago, he says it led to an agrarian distress as farmers were forced to sell much below the MSP. It caused unprecedented unemployment forcing most of the people to migrate to other State.
Now, the chilli farmers in Guntur will face a piquant situation as only corporate companies will come to their doorstep to buy the produce, he says.
Even the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act is not good for farmers, Mr. Rajamohan opines.
Contract farming in India is in the hands of a few big companies. "In Guntur, the ITC introduced subabul crop but when farmers demanded a better price, the company backed off despite pressure from the then State government,’’ recalls Mr. Rajamohan.
